The Securities and Exchange Commission looks at the ICO market


nnn”With the rapid growth of the so-called ICOs in recent months, the SEC is said to be conducting more in-depth research on the use of this raised fund approach.” Although ICO tokens are in the absence of government regulation, according to Reuters, , But the SEC eventually introduced some form of regulatory rules is only a matter of time, and ultimately may make many block chain companies and their ICO face setbacks.n
nnTranslation: Dorisn
nThe Securities and Exchange Commission (SEC) is still focused on regulating the chain-chain companies involved in the ICO.n
nAs more and more block-chain start-ups are being marketed through ICOs for the project, block-chain experts are concerned about the lack of transparency in the issuance of such digital currencies, which could be dangerous for investors, In the regulatory “monitoring radar”, may lead to government regulators concern.n
n”With the rapid growth of the so-called ICOs in recent months, the SEC is said to be conducting more in-depth research on the use of this raised funds approach,” Reuters reported.n
nWith the virtual nature of the ICO is likely to be used for money laundering, which makes the SEC and other regulators pay close attention to it.n
nn
nChallenge to regulatorsn
nThe system in which these chain chains are operating is a problem faced by regulators. Because of its decentralized nature, it means that no single entity is responsible for the issuance of digital money, and regulators can only track third-party service providers, including purse service providers and Bitcoin trading platforms.n
nn
nRegulatory issues: tokens or securities?n
nIn 2014, Federal Reserve Chairman Janet Yellen clarified that the Fed had no jurisdiction over Bitcoin.n
nn”The Federal Reserve does not have the power to regulate or regulate Bitcoin in any way, and as far as I know, there is no intersection between the Bitcoin and the Bank that regulators can implement.”n
nnn
nThe SEC is still uncertain about how to treat block chains and ICOsn
nThe Securities Act of 1933 and the Securities Exchange Act of 1934 broadly define the scope of “securities”, covering any stock, bonds, futures, swaps, investment contracts and so on. In the absence of regulatory guidelines on how to handle Bitcoin or Block Chains, the SEC requires companies that use a chain-chain technology to trade as an exchange, an alternative trading system (ATS) or a broker / securities trader.n
nSection 3 (a) (1) of the Trade Act defines “transaction” as:n
nn”An organization, association or group of any constituent company or non-constituent company which constitutes, maintains or provides markets or facilities for the securities trade, or performs the functions normally exercised by the stock exchange in respect of securities; the transaction also includes the Market and facilities. “n
nnArticle 3b-16 (a) of the Act on Trade defines this definition as: any organization, association or group (1) a collection of orders for the existence of multiple transactions (2) the use of established, non-generic means (whether Through the provision of trading facilities or set trading rules), in this way, the order between the interaction between buyers and sellers to enter this order, agree to the terms of the transaction.n
nThus, if a block-chain technology platform brings together multiple buyers and sellers that are considered as digital assets of securities, the platform may need to be registered as a stock exchange unless it is excluded from registration.n
nIf it is classified as securities, companies with encrypted money will need to provide shares. For example, the SEC is in the affairs of BTC Trading, Corp. And Ethan Burnside, especially because when the company allows users to purchase shares in virtual currency, they violate Articles 5 and 15 (a) of the Act, because they are not registered as brokers Person or securities trader, or as a national stock exchange.n
nTreasury special contributor Jeff John Roberts said:n
nn”Even the most legitimate and financially sound ICOs pose a potential threat to its issuers,” the digital money ‘or the token is very similar to traditional securities because they are able to make the company cash at the same time as the investors’ cash. SEC ‘s approval to sell securities violates federal law.n
nnAlthough the ICO tokens continue to be traded without government regulation, the SEC eventually introduced certain forms of regulatory rules that are only a matter of time and may eventually frustrate many block chain companies and their ICOs.n

Leave a Reply

Your email address will not be published. Required fields are marked *